Hodlnaut crypto-lending platform halts withdrawals

On August 8, the Hodlnaut crypto-lending platform suspended withdrawals, swaps and token deposits due to a liquidity crisis.

The company said the situation was due to current market conditions. The project team, together with Singapore-based law firm Damodara Ong LLC, is working on a recovery plan.

“The suspension of withdrawals and token swaps is necessary to stabilise our liquidity and develop the best plan for restructuring and recovery,” the statement said.

Hodlnaut also withdrew its application for a license from the Monetary Authority of Singapore to conduct exchange operations. The platform will continue to pay interest to clients until further notice.

The company will deactivate its social-media accounts except for a few official channels. The Hodlnaut YouTube account has already been deleted, and founder Juntao Zhu closed his Twitter account.

The company’s site also lacks a page listing team members, including the two founders, five employees and an advisor. The page’s archive is accessible via the Wayback Machine.

Earlier in July the crypto-lending platform Vauld announced the suspension of operations and potential restructuring due to financial difficulties.

In mid-July filing for bankruptcy was filed by the Celsius Network platform. Its liabilities exceed the assets on its balance sheet by almost $1.2 billion.

A month earlier Celsius suspended withdrawals, swaps and transfers between accounts. At the time the company attributed this to “extreme market conditions,” though analysts suggested the real reason was a “liquidity crisis.”

Follow ForkLog’s bitcoin news on our Telegram — crypto news, prices and analysis.